Question

Kelsey has $100 in an account. The intrest rate is %11 compounded annually. To the nearest cent, how much will she have in 2 years

Answer 1

$~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\ 100\\ r=rate\to 11\%\to \frac{11}{100}\dotfill &0.11\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\dotfill &1\\ t=years\dotfill &2 \end{cases} \\\\\\ A=100\left(1+\frac{0.11}{1}\right)^{1\cdot 2}\implies A=100(1.11)^2\implies A=123.21$